Ois

MUMBAI: The rates for overnight indexed swaps (OIS) continued to fall, with the 12-month OIS rate ending just below the six per cent mark. OIS rates are used to price interest rate swaps (IRS). If a participant has invested in an asset which offers a floating rate, then in a falling interest rate scenario it could enter into an IRS, which will offer a fixed rate while it pays floating.

Overnight indexed swaps were largely flat, pausing from their sharp rallies on Tuesday, as traders pared down rate cut expectations after RBI maintained its hawkish stance. The 1-year OIS rose 1 bp to 7.73 percent, while the longer-end five-year OIS rate fell 1 bp to 7.09 percent. RBI said that cut in the SLR announced on Tuesday will provide a future cushion if liquidity deficit surges. Currently, liquidity remains within RBI's comfort zone and will not warrant further OMOs,...

The benchmark 5-year OIS rate was flat at 7.13 percent and the shorter-end 1-year OIS rate was down 1 basis point at 7.72 percent. Dealers are waiting to see the outcome of retail vote in parliament. A positive vote for the government will fuel hopes of further reforms and passage of key bills like FDI in pension and insurance. Liquidity is expected to remain tight ahead of advance tax outflows in mid-December as well as likely higher currency in circulation due to state elections.

MUMBAI: The Reserve Bank of India (RBI), known for its fierce anti-inflationary stance, may be intervening in the government bond market to stem falling yields, as the markets feel, but investors have silently factored in a future rate cut in the overnight index swaps (OIS) market — a proxy platform for G-secs. The benchmark 10-year bond rose to a 13-month peak on Tuesday hitting 8.37% intraday. OIS is a derivative instrument that allows a fixed rate of interest to...

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MUMBAI: Indian overnight indexed swaps (OIS) were steady on Wednesday in the absence of fresh triggers, with dealers eyeing inflation as well as factory data for cues on the central bank's next policy on March 17. At 1:48 p.m., the one-year rate and the benchmark five-year swaps were both steady from Tuesday's closing of 7.41 and 7.99 percent respectively. Volumes on the central bank's trading platform were at 46.75 billion rupees. "The...

MUMBAI: India's overnight indexed swaps (OIS) were steady on Tuesday in the absence of fresh cues but persistent tight cash conditions kept the upward pressure. At 1:05 p.m., the one-year rate was up 2 basis points at 7.44 percent, while the benchmark five-year swap was up 3 basis points at 8 percent. Volumes were a low 500 million rupees on the central bank's trading platform. "The market positioning is light, that's why rates are not rising much.

MUMBAI: Indian Overnight Indexed Swaps (OIS) eased on Thursday following the decline in U.S. yields overnight but traders eyed the weekly food and fuel inflation data around 11 a.m. for direction. At 10.51 a.m., the one-year swap was down 1 basis point on the day at 7.46 percent. It had risen as high as 7.54 percent on Wednesday, its highest since Oct. 10, 2008, according to Thomson Reuters Data. The benchmark five-year swap was down 4 basis points at 8.10...

India's overnight indexed swaps ease with longer-end five-year OIS rate down 5 basis points to 7.03 percent. 1-year OIS also down 1 bp to 7.74 percent. Dealer says OIS easing on hopes of easy policy stance by ECB. There has been speculation that the ECB could reactivate its bond buying programme in order to bring down borrowing costs for Italy and Spain to head off a brewing debt crisis. Adds, liquidity will be in comfort band of the RBI till August-end, but may see some pressure from...

MUMBAI: Indian Overnight Indexed Swaps (OIS) inched up on Thursday after the weekly food and fuel inflation data was higher than in the previous week, dealers said. At 11:52 a.m., the one-year rate rose 2 basis points to 7.38 percent while the benchmark five-year swap rose 3 basis points to 7.99 percent in response to the data, they said.

By Hemant Nahata, IIFL Broader indices have been in a consolidation phase for the last two weeks. The range-bound trading has resulted in a drop in IV for individual stocks as well as the indices. A rollover event generally sees balancing in the Nifty and Monday's trade was a classic example where the Nifty managed to close around 7500. ITC was down 6% but gains were seen in other heavyweights such as ONGC and L&T, which trimmed the Nifty losses as the day progressed. ...

By Vishal Kshatriya , Edelweiss Financial After testing its support of 7200, the Nifty bounced back sharply. This indicates that there is demand emerging near the support levels. Market breadth continues to remain strong, which shows that the current rally is broad based. Mid-cap stocks continue to outperform their large-cap peers in the current rally. In the last few sessions, the F&O market internals point to long build-up in Nifty futures and Bank Nifty...

By Ashish Chaturmohta, Fortune Financials The May F&O contract opened on a profit booking note, as the open interest of Nifty futures has reduced from Rs 1.49 crore to Rs 1.43 crore till Monday and was back to Rs 1.49 crore on Tuesday along with a fall in price by 2.20%. If we see the basis i.e. difference between the futures price and the spot price , it has reduced from 43 points to 29 odd points, indicating liquidation of long positions in the market. FIIs ...

By Vishal Kshatriya, Edelweiss The Nifty continued its uptrend and made new lifetime highs. The rally was driven by good volume and positive market breadth, which show that the ascent is more broad-based. Marginal long unwinding was seen in the Bank Nifty post RBI's monetary policy meeting. Rollover for the March F&O series was relatively low against recent average. This could be due to either higher OI base or March year-end phenomenon when speculators preferred to let...

By Vishal Kshatriya, Edelweiss Last week major economic data for Indian economy was released. IIP , CPI and WPI numbers were released. Indian markets marginally bounced back post announcement of these data. After bouncing back from its important support, the Nifty managed to sustain its gains. Last week, we didn't see major changes in Nifty and Bank Nifty futures open interest which indicate that major activity in markets was driven by intraday trading. Important...

The benchmark 5-year OIS rate fell 1 bp to 7.13 percent, while the 1-year rate was unchanged at 7.80 percent as caution prevailed ahead of April-June GDP data due on Friday. "There are talks of a sub-5 percent print on GDP, so dealers are going long bonds and receiving rates," a senior dealer with a foreign bank said. Weaker-than-expected GDP data could add pressure on the RBI to cut rates at its mid-September policy review despite recent rhetoric language from the central bank.

MUMBAI: Five-year swap rates fell on Thursday, as the US Fed's policy statement on Wednesday flagged risks to the recovery of the world's largest economy, which may prompt central banks elsewhere to go slow on rate hikes, traders said. At the same time, tighter liquidity conditions in the banking system prevented receiving in short-term swaps, sending swap spreads to fresh lows. The benchmark five-year overnight indexed swap (OIS) rate ended at 6.70 per cent, from its previous close of 6.78...

By Chetan Jain and Anand Rathi The Nifty finally took pause from the southward journey around 5950-6000, which was acting as strong support area. Since the starting of the February series, maximum put OI was getting concentrated at 6000 and despite Nifty futures breaching that psychological level, put writers were comfortable at 6000 strike and no major unwinding was seen indicating that area had acted as major support. Now for the short term, the markets are in the...